On Dec. 12, Governor Mark Dayton and Minnesota Department of Employment and Economic Development Commissioner Katie Clark Sieben announced that a new fund will allow Minnesota startups to apply for interest-free loans.
The state created the $6.7 million Angel Loan Fund— which is part of the State Small Business Credit Initiative — in order to help entrepreneurs with startup costs, purchases, inventory and franchise funding, construction costs, and more.
Entrepreneurs can apply today for loans up to $250,000.
“Entrepreneurs who want to start new businesses and create more jobs in Minnesota should have access to as much help as we can reasonably provide,” Governor Dayton said in a statement. “Minnesota is one of the best places in the nation to own a business, and the new Angel Loan Fund we are announcing today will help make our state an even more attractive place for new business owners to set up their operations, expand, and hire new workers.”
The Angel Loan Fund is one of four other Minnesota programs that operate under the State Small Business Credit Initiative. In total, the initiative allocates up to $15.4 million into four funds for small businesses that have good credit, but aren’t getting the loans needed to move their business forward.
“New businesses are the lifeblood of Minnesota’s economy, but many struggle to access capital from conventional funding sources in the early stages,” Clark Sieben said. “This fund will help them leverage new funding and support their success in a competitive business environment.”